Juhe Materials acquires for 298 million to expand semiconductor materials; endogenous and external epitaxy drive dual growth, with overseas revenue increasing by over 128%

Changjiang Business Daily News ● Changjiang Business Reporter Huang Cong

Driven by R&D, Juhe Materials (688503.SH) completed an overseas acquisition.

On March 31, Juhe Materials announced that the company previously co-invested with Han投 partners to acquire the business division related to SKE blank masks, with the target company being Lumina Mask Corporation. As of the announcement date, all preconditions for the transaction’s equity transfer had been met, and the company paid a transaction price of 298 million yuan, with the final actual transaction amount being less than the previous agreement.

After the transaction, Juhe Materials directly and indirectly holds a total of 96.88% of Wuxi JuGuang Semiconductor’s shares, and its wholly owned subsidiary JuGuang Core Microelectronics holds 100% of Lumina Mask Corporation.

Juhe Materials stated that the company plans to become a platform-based advanced materials technology leader through an “external expansion + internal growth” strategy, and aims to enter the semiconductor materials business via acquisitions.

In terms of performance, by 2025, Juhe Materials is expected to achieve operating revenue of 14.59B yuan, a year-on-year increase of 16.86%; net profit attributable to the parent company of 420 million yuan, a year-on-year increase of 0.4%.

Specifically, in 2025, domestic revenue will reach 12.43B yuan, up 8.29% year-on-year; overseas revenue will reach 2.09B yuan, up 128.51%.

Final transaction price lower than previous estimates

Juhe Materials is an R&D-driven advanced materials company. Since its establishment in 2015, the company has continuously invested in R&D to deepen its expertise in advanced materials, especially in photovoltaic conductive pastes.

Data shows that Juhe Materials’ technical capabilities cover the synthesis of inorganic and organic materials, formulation design, manufacturing processes, analysis, and application development, forming a diversified product portfolio.

In September 2025, Juhe Materials, Han投 partners, and SKE jointly signed a “Share Transfer Agreement.” According to this agreement, the company and Han投 partners will jointly establish an SPC to acquire SKE’s related business division with 68B Korean won (approximately 350 million RMB, with the final transaction amount subject to the exchange rate at the time of settlement) in cash, using self-raised or self-funding. SKE plans to spin off its blank mask-related business division into a new company. The company and Han投 partners will mainly acquire 100% equity of the target company, with the company’s direct or indirect investment not less than 95%.

By December 2025, SKE had established the target company Lumina Mask Corporation through a spin-off in accordance with the conditions and methods stipulated in the Share Transfer Agreement.

Juhe Materials introduced that it had jointly established Jiaxing Han投 Changshi Yunhai Venture Capital Partnership (Limited Partnership) (“Changshi Fund”), in which the company holds 93.75%, and Han投-controlled Jiaxing Han投 Fuxing Self-Funded Investment Partnership (Limited Partnership) holds 6.25%. The company and Changshi Fund also jointly established Wuxi JuGuang Semiconductor Co., Ltd., with each holding 50%, making it a controlled subsidiary.

Additionally, Juhe Materials and Han投 partners have amicably agreed to designate Wuxi JuGuang Semiconductor Co., Ltd.’s wholly owned subsidiary JuGuang Core Microelectronics (Shanghai) Co., Ltd. as the SPC transferee, for subsequent acquisition of 100% of the target company’s equity and completion of the target business acquisition.

On March 31, Juhe Materials announced that, as of the date of this disclosure, all preconditions for the equity transfer had been met. The company paid 64.97B Korean won (equivalent to 298 million RMB at the exchange rate) according to the Share Transfer Agreement.

Regarding the final actual transaction amount being less than the previous estimate of 68B Korean won, Juhe Materials explained that this was mainly due to operational expenses paid during the settlement process being lower than initially estimated, and both parties adjusted accordingly. As a result, the settlement procedures for this transaction have been fully completed.

After the transaction, Juhe Materials directly and indirectly holds a 96.88% stake in the controlling subsidiary Wuxi JuGuang Semiconductor Co., Ltd., and its wholly owned subsidiary JuGuang Core Microelectronics (Shanghai) Co., Ltd. holds 100% of Lumina Mask Corporation.

Revenue increased by 16.86%

In recent years, Juhe Materials’ performance has remained stable, with rapid growth in overseas revenue.

In 2025, Juhe Materials achieved operating revenue of 14.59B yuan, up 16.86% year-on-year; net profit attributable to the parent was 420 million yuan, up 0.4%.

Juhe Materials explained that the company has proactively laid out trends toward lead-free and silver-free technologies, providing customers with a full set of precious metal paste systems (silver-nickel paste, silver-coated copper paste, pure copper paste), low solid content conductive pastes, and next-generation ultra-narrow line width printing pastes, which help reduce costs further for the photovoltaic industry and battery customers, thereby consolidating its position as a global leader in photovoltaic conductive pastes.

Conductive silver paste is a key material for domestic industry localization. This seemingly insignificant “small material” is actually a “big heart” that determines the efficiency of battery conversion.

In 2025, Juhe Materials’ photovoltaic conductive paste sales volume will reach 1,867 tons, ranking among the top globally, establishing it as an industry leader.

In 2025, domestic revenue will reach 12.43B yuan, up 8.29%; overseas revenue will reach 2.09B yuan, up 128.51%.

Juhe Materials stated that the company actively responds to the national strategy of semiconductor self-sufficiency by penetrating the semiconductor materials field through overseas acquisitions and autonomous team building. In the future, it plans to leverage its own R&D platform, industrialization experience, and operational capabilities to accelerate the promotion of local innovation, mass production, and market application of semiconductor materials in China.

Driven by the demand for autonomous and controllable semiconductors, domestic manufacturers are using DUV blank masks as a strategic breakthrough point, accelerating the domestic replacement of mid-to-high-end supporting blank masks.

According to Zhuoshi Consulting’s estimates, China’s demand for blank masks is growing significantly, reaching 2.9 billion yuan in 2024, expected to grow to 7.6 billion yuan by 2029, with a compound annual growth rate of 25.1% from 2025 to 2029. The rapid growth in end-user demand and the relatively low current domestic capacity supply create a clear market space for domestic substitution.

Juhe Materials explained that by acquiring SKE’s blank mask business, it plans to enter the DUV-ArF and DUV-KrF lithography-grade blank mask market. Blank masks are core materials in semiconductor manufacturing, and only a few companies can achieve mass production.

Juhe Materials stated that it plans to become a platform-based materials technology leader through an “external expansion + internal growth” strategy. Currently, it has formed three main business segments: pastes, powders, and adhesives, but its main revenue still relies heavily on the photovoltaic application sector. To further transcend industry cycles and become a platform-based new materials group, the company is entering the semiconductor materials business via acquisitions.

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Editor: ZB